Tools · Roth vs Traditional

Roth vs Traditional.
Which wrapper wins?

The Roth vs Traditional decision depends on one question: will your tax rate be higher now or in retirement? This calculator shows the math for your specific numbers, including what happens when you add a Bitcoin allocation inside the Roth.

This page covers US-specific accounts and tax law. Outside the US? The priority order is the same, the account names differ (ISA in the UK, TFSA/RRSP in Canada, Super in Australia, etc.).
20%
ROTH (AFTER-TAX)
$0
100% tax-free withdrawals
TRADITIONAL (PRE-TAX)
$0
Tax owed: $0
ROTH + BITCOIN
$0
100% tax-free withdrawals
TAX TIMING: WHEN THE BITE HAPPENS
Two bars: Traditional (tax paid at withdrawal, shown as a red segment eaten from the top) vs Roth (tax paid up front from contribution, shown as a red segment at the bottom of contribution, with the growth zone entirely yours).
TRADITIONAL · pay later
tax owed at withdrawal
growth
contribution
Net: $0
ROTH · pay now
growth (tax-free)
contribution (after-tax)
tax paid now
Net: $0
Traditional: full balance grows tax-deferred, tax is paid at withdrawal on the entire amount. Roth: tax is paid once on the contribution, everything that grows afterward is yours.

The key insight: if you expect to be in a higher bracket in retirement than today, Roth wins. Bitcoin inside a Roth amplifies this advantage, high-growth assets benefit most from tax-free compounding because the tax savings grow with the balance.

What this tool assumes
  • Current marginal tax rate applies to the Roth up-front cost.
  • Retirement marginal rate applies to the Traditional at withdrawal.
  • No required minimum distributions modeled.
  • Bitcoin CAGR scenarios are hypothetical; past performance does not predict future returns.
Sources
  1. IRS, "Roth vs Traditional IRA comparison" - irs.gov
  2. 2026 IRA contribution limits: $7,500 (under 50), $8,600 (50+) - irs.gov
NEW TO THIS TOPIC?

See the glossary for plain-English definitions of every term used here.

Not tax advice. Consult a CPA for your specific situation.

Related

→ Roth IRA Deep-Dive → Backdoor Roth → Roth Conversion Ladder → Bitcoin ETFs in a Roth IRA
HOW THIS IS CALCULATED

This tool runs entirely in your browser — no data is sent to any server. All formulas use standard financial math. Verify the methodology or inspect the source code in your browser's dev tools.